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Franchise
Playersis Entrepreneur’s Q&A interview
column that puts the spotlight on franchisees. If you're a
franchisee with advice and tips to share, email
ktaylor@entrepreneur.com.

Do you believe in second chances? John Rusnak does – it's the
only way he's been able to make a comeback after being
incarcerated for bank fraud. In 2003, Rusnak was sentenced to 7-1/2 years in prison for
covering up $691 million in losses at Allfirst Financial, a
former unit of Allied Irish Banks. Since his release in 2009
(he served less than his full sentence), franchising has
become his chance to do things right. Today, he operates four
ZIPS Dry Cleaners, making an effort to employee individuals
out of prison and rehab.

Name: John Rusnak

Franchise owned: My firm owns three ZIPS Dry
Cleaners, which are located in Pasadena, Glen Burnie and Columbia
Maryland.

How long have you owned the franchise?

I am the president of Pilgrimage Development which is owned by
four investors. Pilgrimage is the franchisee, which signed a
development agreement to build twenty ZIPS Dry Cleaners in
February of 2011.

My lead investor is Harvey Rothstein, the CEO of DavCo
Restaurants. DavCo owns and operates 156 Wendy’s in Maryland,
Northern Virginia, and the District of Columbia. In 2001, I was
convicted of a federal financial crime related to a banking
scandal at Allied Irish. Harvey was very kind to me and offered
me a second chance to work with him at DavCo upon re-entering
society.

I was able to learn a great deal about franchising while at
DavCo, as I focused on automating the business in order to
provide remote oversight, operational metrics and streamlined
reporting with predictive capabilities. After a few years, Harvey
suggested that we find a new, appropriate brand for him to invest
while I become operator.

Ultimately, franchising offers an established brand, a proven
process, and a team of franchisee ‘experts’ who offer insights
and knowledge.

What were you doing before you became a franchise
owner?

I was a managing director of a financial markets trading
operation focusing on currency derivatives prior to my
incarceration in 2001. Once I was released in 2009, I worked as
the senior director of Automation & Efficiency at DavCo.

Why did you choose this particular
franchise?

We explored several concepts including: quick service
restaurants, car washes, concierge, medical, and business
services; however, dry cleaning stood out for two reasons.

First, dry cleaning is one of the last retail segments that is
not yet been commoditized. The competition is primarily Mom &
Pop operations or small family owned chains. Second, it offers an
unusual combination of a low cost-of-goods-sold and low labor
rates.

Most businesses with a low cost-of-goods-sold are services with
highly skilled and well paid staff. The ZIPS discount model stood
out when compared to other concepts.

How much would you estimate you spent before you were
officially open for business?

Harvey Rothstein is my mentor and has provided his counsel
throughout the entire process. From the initial investment to the
daily operations, I am able to turn to Harvey for encouragement
and accountability.

Other than standard business decisions, Harvey has also
encouraged me to follow my desire to help others by giving a
second chance to men coming home from incarceration or those
living in drug rehab houses.

What were the most unexpected challenges of opening your
franchise?

When I first took on the franchise effort, it was a challenge to
find and on-board a staff that was loyal, trustworthy and
dedicated. I now have an established, core team who carry the
heavy weight of the operations, and with whom I’ve trust to
manage daily processes, but it took far longer than
expected.

I firmly believe in empowering my team by giving them a clear
picture of what success will look like in both the short and long
term. Once the paradigm is established, I allow freedom to make
decisions and mistakes so they experience true ownership of the
operational tasks.

What advice do you have for individuals who want to own
their own franchise?

Conduct extensive research; understand the time and monetary
commitment. Base your models on worst case scenarios rather than
pie in the sky hopeful forecasts. Find someone who is good at
what you want to do and utilize their insight. Humility in
business is rare and thus usually well received.

What’s next for you and your business?

Expansion—we have 17 more stores to build or purchase in order to
fulfill our development agreement. We are considering a slight
change in the model for our next location by building a drop
store rather than another processing plant. We are also exploring
ancillary products and services we can offer that produce fee
income and limited liability.

On a more personal level, I plan to continue my work assisting
young men and women in adult prisons and those in drug recovery
programs find employment.